California Averts Decision: 'No' Prevails
In a move to protect consumers, California's latest regulation, AB 2426, targets false advertising in the sale of digital video games online. Effective from 2025, the law is designed to ensure transparency and prevent misleading claims about digital content, such as games, audio, video, and digital books.
The regulation is focused on preventing false representations related to the purchase of digital video games online. It mandates that sellers in California must clearly state that access to a video game may be revoked at any time when customers proceed to payment. By 2025, the word "buy" must be removed from purchase buttons for video games in California.
The California ruling considers purchasing a digital video game as obtaining the right to play it for a limited time, not ownership. The ruling does not specify how long the limited time access to a video game will be. It's important to note that this regulation does not affect the ownership of physical video game boxes.
The new law aims to address false advertising in the digital goods market, specifically in the context of video game sales. It holds sellers accountable for truthful marketing of digital games and other digital media, helping to reduce consumer deception in the digital marketplace.
AB 2426 requires sellers to disclose key information about digital goods before purchase and to communicate clearly to prevent false or misleading advertising related to online digital content, including games. This step reflects growing regulatory attention to the digital marketplace, emphasizing transparency and preventing consumer harm from deceptive digital sales practices in California.
Non-compliance with the California regulation could lead to legal action for false advertising. Lawsuits for false advertising are a risk for those who do not comply with the new California regulation regarding video game sales. The California jurisdiction ruled that online video game sellers cannot represent customers as buyers of the games.
In conclusion, the new California law is a significant step towards protecting consumers from false advertising in the sale of digital video games online. It underscores the importance of transparency and truthful marketing in the digital marketplace, ensuring that consumers are well-informed about their digital purchases. The law does not apply to video game purchases outside of California.
[1] California Legislative Information. (2021). AB 2426 (Gonzalez) Digital goods: disclosures. Retrieved from https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220AB2426 [5] California Department of Consumer Affairs. (n.d.). AB 2426 (Gonzalez) Digital goods: disclosures. Retrieved from https://oag.ca.gov/system/files/attachments/press-releases/2021/09/AB-2426-Digital-Goods-Disclosures-Bill-Fact-Sheet.pdf
- This regulation, AB 2426, in California's digital marketplace, targets false advertising, not just video games, but also digital audio, video, and books.
- The California law is not only focused on the gaming industry; it extends to all businesses involved in digital sales, ensuring truthful marketing practices for digital goods.
